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New Zealand’s rationality for food exporting

Food manufacturing in New Zealand today and into the future Dean Boston General Manager Baker Boys Ltd. New Zealand’s rationality for food exporting.

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New Zealand’s rationality for food exporting

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  1. Food manufacturing in New Zealand today and into the futureDean BostonGeneral Manager Baker Boys Ltd

  2. New Zealand’s rationality for food exporting • When a NZ manufacturer exports a food product, especially to Asia, we are not exporting a product. We are exporting a vision of a black and white cow standing in a green field in front of a snow capped mountain with clean sky above. We export trust in food

  3. Challenges for (Food) Manufacturing • Rising HR Costs • Increasing min wage and the flow on effect • Increasing compliance – DV Leave • Difficulties in gaining good staff • Increasing demand for speed to market – “trends” lead • Reseller demand for lower pricing to offset their rising costs • Border controls (each bio hazard found challenges clean image) • Increasing compliance for exporting • ethical traceability to source • “green” packaging requirements

  4. Future manufacturing and the big $$ theory • In the past companies have fallen into the small “do it yourself” operations or the big “Corporates”, and New Zealand has generally existed at the small end of town • Traditional NZ companies have done great things with people, ingenuity, and number 8 wire but have struggled to make the jump to technology driven because of high costs involved • Anecdotes such as “SAP, there’s a couple of million gone”, and “Robots look great but cost hundreds of thousands” are common. We have survived on making do, hiring more people, and continuing with a clipboard and paper • We have to get smarter but we need to do it our way

  5. Smart Enough The journey into the industrial internet of Things (iIot) The Kiwi way

  6. The Journey

  7. Technology is operating across many aspects within the Food Industry Connecting creates cheaper, better and safer products

  8. Integrated Processes Focused on better solutions around the fringe of core operations Systems used to cost Millions now Thousands Primary areas: • Integrating various operating systems. • Data capture and measuring. • Single data entry across the business Outcomes are better capture and use of information

  9. Connected supply chain – Dual drivers Consumers are demanding better knowledge of the authenticity of their purchases. Distribution and Retailers are demanding easier and cheaper operating models EDI now common place for all shared documents

  10. Automation Typically large capital projects transforming entire or parts of the production process. Focus on: • Efficiency gains on specific processes • ROI on each project • Stand alone projects – often little integration

  11. Big Data results from Automation The potential for data is exponentially growing. The immediate challenge is how to use it. Storage in the Cloud now a commodity • Plunge of price of entry • Cost effective and practical to go to scale with reasonably fast internet • Easy to establish and start using • Three main global players • Microsoft – currently controls the corporate desktop, and is bundling Assure IoT Tools in the main Office 365 and Azure licencing • Google – big data leader • Amazon – carving into the supply chain war

  12. Intelligence at the Edge The increase in connected automation requires a quantum change in factory management and skill sets. • Decisions and processes handled within smart device which require fewer operators to know what is going on • Managers and planners gain immediate access to real information • Cost plummeting • Data Connections standardised

  13. Consumer driven – now industrialised • Extensive use of video • Augmented Reality • Voice Driven • Handsfree

  14. In line devices • High Speed – in line • Applied intelligence in device • Results sent to integrated systems Example of Smart-ness levels 1: Validate Correct Barcode for the current Batch 2: Validate correct Barcode and Label details – April Eye 3: All Cartons on a pallet

  15. Checks Layout and Human Readable text as well as barcodes

  16. Robots are changing • Prices start at $35K today vs $250k 15 years ago (my personal experience) • “Colab” robots work along side humans without the need for guarding • Delta robots are fast while handling delicate items • Programming is done by operators with minimal training = low cost

  17. Latest Australian comment on expectedrole extinction due to automation uptakeLooking at the number of roles expected to disappear this demonstrates the speed they plan to race down the path of manufacturing automationWe need to match or exceed them to remain competitive

  18. Interesting impact of this trend:overall net 20% reduction in labour force while food production over the same period is expected to double plus jobs gained will be higher skilled.Questions ?

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